Move to add value to global chains
THE rise of automation, artificial intelligence and robotics should be viewed as an opportunity rather than a jobs-destroying threat, the head of Siemens Australia says.
Jeff Connolly, who heads the local arm of the German industrial giant, has said the future of Australian manufacturing lies in designing and producing inputs for global supply chains rather than trying to make complete products for a domestic market.
Mr Connolly said a “fourth industrial revolution” was set to reshape manufacturing globally over the next 20 years as the digital became fused with how things were made.
While automation, artificial intelligence, robotics and digital fabrication technologies have sparked fears of major job losses, Mr Connolly said the changing nature of work did not mean less of it.
“It’s definitely a big transition but many people would tell you we don’t have a shortage of jobs at the moment, we have a shortage of skills in the areas we need,” Mr Connolly said.
“To survive we really need to be globally competitive and that comes in a number of ways — how we manufacturer, what we manufacturer and how we see the definition of manufacturing in the future.”
Mr Connolly will be part of a high profile panel discussion at Broadmeadows tomorrow being organised by the Business Council of Australia, Sky News and News Corp, publisher of the Gold Coast Bulletin.
The event will allow people to have their say on the best ways to tackle some of the big issues facing the nation, including how to adapt to a new manufacturing environment.
Ford Australia president Graeme Whickman, DuluxGroup chief Patrick Houlihan, BCA chief Jennifer Westacott, Kangan Institute chief Trevor Schwenke and Australian Performance Vehicles managing director Harry Hickling will also take part.
Award-winning Sky News political editor David Speers will moderate the forum — one of 10 such events being held nationwide as part of a campaign called Strong Australia.
Mr Connolly said Australia needed to change its mindset around manufacturing from being focused on a small domestic market to looking at where it can provide value in massive global supply chains.
“We can still participate in the auto manufacturing industry,” Mr Connolly said.
“We won’t necessarily punch out the car in Australia but we will be designing components in the virtual world that will be incorporated wherever the point of consumption is.”
Manufacturers such as Moorabbin-based Marand Precision Engineering, which is supplying components to the F-35 Joint Strike Fighter jet build, and Western Australian ship builder Austal, which has won contracts from the US Navy, showed local businesses could mix it on the global stage, Mr Connolly said.
Australian industry needed to make sure it was using the same design and information technology platforms as global industrial giants.